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Reorg Radio

Benefit Street Partners’ President Rich Byrne Talks High Interest Rates, Retail Investors In PC

Nov 6, 2023
25:24
Snipd AI
Richard Byrne, President of Benefit Street Partners, discusses the impact of high interest rates on private credit, highlighting the benefits and risks. He also talks about the role of retail investors in the asset class and the challenges and opportunities in private credit investments, including fundraising trends and performance of VDCs.
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Podcast summary created with Snipd AI

Quick takeaways

  • Higher interest rates bring challenges and opportunities for private credit lenders, leading to market re-pricing and increased investment opportunities.
  • Retail investors are increasingly involved in private credit, attracted by stable investment options and a shift towards accessible and liquid structures for individual investors.

Deep dives

Impact of High Interest Rates on Private Credit Market

The rapid rise in interest rates presents both challenges and opportunities for lenders in the private credit market. Higher interest rates have led to a re-pricing and adjustment phase in the market, creating favorable conditions for new capital investment. Despite the expected increase in default rates, the market outlook remains positive due to heightened yields and improved deal structures, offering a significant opportunity for new capital to invest.

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